One year of tax debt is never ideal. However, the real concern is if, as another year rolls around, you’ve still got that debt, plus a new year’s debt. This can happen to a business for several reasons – an extended period of challenging cashflows, for example.



If it does happen to your business, however, you need to talk to the team at EPAS immediately. This is because stacking multiple years of tax debt can quickly become overwhelming.



The first thing to understand is that you’re not alone in this. About seven per cent of all revenue that should be collected by the ATO – around $33.4 billion – is money owed but not being paid by taxpayers. The bulk of that unpaid tax comes from individuals and small businesses.

The second thing to understand is that the ATO does favour leniency. The perception that many have is that the ATO is a frightening government body, but this simply doesn’t play out when, with the support of the expert negotiators at EPAS, you start talking to them about your debt.



How EPAS will help



When you’re faced with multiple years’ worth of tax debt, there are two immediate priorities:



1)  First, you need to understand why you’ve ended up in this position. EPAS will run a thorough audit of your business to understand why it is struggling to meet its taxation obligations. If there are cashflow issues or overspending, we will identify them. We will then, over the longer term, develop a plan to address this so that your business is in a much healthier position in the future.



2) Secondly, we’ll work with your business and the ATO to arrive at a solution that will satisfy the ATO and clear your debt. We’ll negotiate to consolidate the debt into one. We'll then arrange a payment schedule that will allow you to pay it off without harming the business’ cash flow and ability to recover. We’ll also negotiate tax debt relief – to the point that for some clients we can reduce it to cents on the dollar.



Without the support of EPAS, and without negotiating with the ATO, your business could wind up in a position where it is paying off multiple debts simultaneously, each accumulating a general interest charge (GIC). While the ATO’s position is that it wants businesses to stay open, as they are beneficial to the economy, it also has a policy to take the most effective recovery action at the most appropriate time.



Ultimately, if you avoid the problem for too long, those business tax debts could end up being transferred as personal liabilities to you. This can cause incredible stress for you, your family, and your lifestyle.



Tax debt – even multiple years’ worth – does not need to mean the end of your business. Just don’t ignore the problem and hope it goes away. Contact EPAS today to work out a strategy to consolidate and clear your debts, and then position your business to be healthy into the future.